W Health Ventures launches $70 million Fund II to build healthcare companies from scratch

The firm’s first fund, launched in 2020, backed 12 companies including BeatO (diabetes), Mylo (parenting), BabyMD (pediatrics), and Wysa (AI mental health)

Betting big on the future of healthcare infrastructure in India and beyond, W Health Ventures has announced a $70 million second fund focused entirely on building companies from the ground up.

Fund II will back 8–10 startups over the next four years using the firm’s distinctive "company creation" model – where ideas are conceived, validated, and scaled internally before external founders are brought in to lead them.

“Fund II really doubles down on our company creation model,” Dr. Pankaj Jethwani, Managing Partner at W Health Ventures, told Moneycontrol. “It’s something that we’ve built through a lot of trial and error over the last several years.”

Unlike traditional VCs that spread bets across dozens of startups, W Health plans to take concentrated positions, investing $3–5 million in each company initially and reserving a similar amount for follow-ons. The fund size may go up to $100 million by the time of its final close.

The firm’s first fund, launched in 2020, backed 12 companies including BeatO (diabetes), Mylo (parenting), BabyMD (pediatrics), and Wysa (AI mental health). Several of those were incubated in-house with support from its venture studio partner 2070 Health.

In W Health’s model, ideas are sourced from physician and patient interviews, tested rigorously, and only then brought to market. “Ninety-three percent of our ideas get killed,” Jethwani said. “The kind of conviction we’re able to build before we launch a company makes us go all in.”

The fund’s first investment is EverHope Oncology, a joint venture with Narayana Health that aims to reinvent cancer care in India through advanced diagnostics, modern treatment spaces, and standardized clinical protocols. “The journey of a patient with cancer – if you have all the means in the world – might be average at best. If you don’t, life is very hard,” said Jethwani. “It doesn’t have to be this way.”

The firm is also betting on AI to help oncologists stay current with fast-evolving research and treatment options. “It is impossible for a human to stay up to date. That is a very important role that AI can play.”

The second company, still in stealth, is building a managed services platform for psychiatry clinics in the US – starting with treatment-resistant depression. The model is asset-light and combines automation, AI, and offshore talent to support clinical operations.

W Health’s investment thesis is built around two themes: single-specialty care models for India and AI-powered B2B services for global markets. “India is the world’s pharmacy,” said Jethwani. “We believe AI-enabled healthcare services will be India’s biggest gift to the world after pharma.”

The launch comes amid a broader resurgence in VC fundraising. After a quiet 2024, several India-focused and global venture firms – including Accel, Bessemer Venture Partners, A91 Partners, and Prime Venture Partners, among others – have announced new funds this year.

Many others, including Nexus Venture Partners, and Fireside Ventures, are in the process of raising funds, reflecting cautious optimism returning to private markets.

W Health’s new fund reflects a growing interest among VCs in more focused, thesis-driven strategies as they return to market after last year’s slowdown.